Outsourcing Back Office Services: How Does It Work?

While your team has a full plate of core functions, these administrative tasks can stretch your employees and wear them out. This could then lead to low-quality output, more mistakes, and unnecessary expenses. To help with this scenario, companies outsource their back office jobs to a trustworthy provider.

For starters, how can you outsource back office services? What roles can you delegate, and why should you do it?

What is back office outsourcing?

Back office refers to the portion of the company that performs administrative and non-customer-facing roles. They are separated from the portion of the company where employees must directly interact with clients – also known as the “client-facing” employees.

Back office support services come in when a company needs to provide support to the front office.

What back office roles can you outsource?

Many companies still retain some back office functions in-house. However, outsourcing several roles helps them save more money, streamline processes, and gain access to global talent.

Finance and Accounting

Outsourcing finance and accounting jobs is very common for mid to large-sized businesses.

With outsourced accounting, you won’t have to worry about mishandling your finances and getting late on compliances again. Finance and accounting firms can help you:

• Monitor and track your accounts,
• File your taxes correctly and on time,
• Manage your workforce demand through budgeting
• Implement your accounting processes, and
• Disburse salary payments

IT Services

Aside from accounting, IT services have also increased its demand over time. Outsourcing IT services can help you manage your internal IT network and update your systems, so it works smoothly and securely.

IT services cover a wide range of functions, such as:

• Network management,
• Security implementation and updating,
• Data storage, backup, and recovery,
• Process implementation, and
• Systems support services

Recruitment 

Whether you’re looking for freelancers, remote employees, or in-house staffing, professional employment organizations (PEOs) and recruitment processing outsourcing (RPO) firms can help you with that. 

These recruitment firms can help you screen and hire suitable employees for your roles. Like in different outsourced roles, they will team up with you in managing your recruitment and help you with:

• Managing online job postings,
• Processing of applicant resumes,
• Screening pre-qualified employees, and 
• Filtering the best candidates according to company qualifications

Human resource management

When you outsource human resources management, meanwhile, you get to manage your employees and their data better. 

Unlike recruitment firms, human resource firms cover a broader range of employee management. They get to manage employee data, analyze and process reports on employee turnover, oversee attendance, and implement company policies.

Many firms also conduct trainings for your employees so they can enrich their skills better.

Regulatory compliance

Regulatory compliance firms, meanwhile, help you with any additional compliances for your operations. Though relatively new, outsourcing compliance has become sophisticated for their increasing clients. 

Almost one-fourth (24%) of businesses keep their compliance in-house. Meanwhile, those who outsource, make sure that their firms follow rules and regulations both in their home countries and in the West.

Outsourcing compliance tasks can help you save money and minimize errors in submitting and updating your documentary requirements. They can also guide you in implementing company regulations according to your standards.

Industries Benefit From Back Office Outsourcing

Now that you know about the different benefits of back office outsourcing, it’s time to learn if you can enjoy them in your company. Here are the most common industries that benefit from back office outsourcing:

IT Industry

In the fast-paced IT industry, back office outsourcing can be a game-changer for companies aiming to stay competitive while focusing on core competencies. IT companies, whether startups or established enterprises, often require support with tasks such as finance and accounting, IT support services, and human resource management. By outsourcing these functions, your firm can streamline its operations and reduce overhead costs, allowing you to focus on innovation and technology development.

Outsourcing back office tasks also provides IT companies access to specialized skills without the need to invest in extensive training or additional resources. For example, managing databases, handling technical documentation, and providing IT support services can be efficiently outsourced to experienced third-party providers. This not only ensures high-quality output but also allows your in-house teams to concentrate on strategic projects that drive growth and enhance your company’s competitive edge.

Accounting and Finance

The accounting and finance sector is highly regulated and demands precision, accuracy, and strict compliance. Back office outsourcing can be particularly beneficial for your business, enabling you to manage routine tasks such as bookkeeping, payroll processing, tax preparation, and financial reporting more efficiently. By outsourcing these functions to specialized providers, you ensure that these critical tasks are handled by professionals who are well-versed in the latest regulations and standards.

Moreover, outsourcing back office functions allows you to scale your operations without incurring significant overhead costs. During peak periods, such as tax season or the end of the financial year, you can rely on outsourced teams to manage increased workloads, ensuring timely and accurate deliverables.

This flexibility not only enhances your operational efficiency but also helps you maintain compliance and avoid costly errors. In an industry where accuracy and timeliness are paramount, back office outsourcing is a strategic move that can lead to significant cost savings and improved service quality for your business.

Marketing Agencies

Your marketing agency thrives on creativity and innovation, but you also require robust back office support to manage the administrative aspects of your operations. By outsourcing tasks such as human resource management, recruitment, and IT services, you can free up valuable time for your creative teams to focus on developing campaigns and strategies that drive client success.

Back office outsourcing also provides you with access to specialized skills and technologies that may not be available in-house. By outsourcing administrative functions, you can improve your turnaround times and reduce operational costs, making your agency more competitive in a crowded market.

Real Estate

The real estate industry is ever-changing, demanding a lot of administrative work—from managing property listings and processing transactions to handling client communications and maintaining records. Imagine how much more you could achieve by outsourcing these tasks and streamlining your processes. With back office outsourcing, you can focus on what you do best: closing deals and building strong client relationships.

By outsourcing tasks to a third-party service provider, you can boost the efficiency of your real estate operations. You’ll ensure that critical tasks are handled promptly and accurately, reducing the risk of costly delays or legal issues.

Plus, outsourcing gives you the flexibility to scale your operations as needed, whether you’re navigating a busy buying season or expanding into new markets. By offloading time-consuming administrative tasks, you can dedicate more energy to sales, marketing, and client engagement, ultimately giving your business the edge it needs to thrive in a competitive industry.

Architecture and Engineering

Architecture and engineering firms are all about handling complex projects that demand meticulous planning, design, and execution. But alongside this creativity and precision comes a mountain of administrative work—project documentation, recruitment, and financial management—that can slow you down. Imagine the difference it could make if you could offload these tasks and focus more on what you do best: designing and delivering top-notch projects.

By outsourcing your back office functions, you can manage these tasks more efficiently, freeing up your time to concentrate on your core competencies. You’ll also gain access to specialized expertise and cutting-edge technology without the need to invest in expensive software or extensive training.

Retail

The retail industry is all about fast-paced operations, high transaction volumes, and efficient inventory management. However, keeping up with these demands can be challenging.

That’s where back office outsourcing comes in—a powerful strategy for streamlining your administrative processes and cutting down on operational costs. By outsourcing tasks like recruitment, IT services, regulatory compliance, and payroll, you can focus more on what really drives your business: sales, marketing, and engaging with customers. Outsourcing back office functions also allows you to respond swiftly to market changes and customer demands.

Advantages of outsourcing back-office services

 

Outsourcing the back office jobs mentioned above can help you save time and resources. These services may vary depending on the size and industry of your organization.

Here are some of the benefits outsourcing back-office services can give you:

Access to back-office support expertise

Back office support services allow skilled people to provide quality services with the use of advanced technological resources. Through outsourcing, third-party providers can hire qualified people for specific roles, capable of providing extensive training and seminars.

Outsourcing to BPO companies, for example, would hire highly skilled admin experts who can handle these services. These experts undergo a meticulous screening process to ensure that your team will receive quality output.

Time and Cost-Efficiency

Outsourcing back office operations, among other services, can help a company save up to 60% on employment costs. This is because the outsourcing provider has the capacity to provide everything – the manpower, facilities, tools, and equipment – at a fraction of the price.

Reinvest in your business

Outsourcing’s biggest advantage would be cutting back on cost – but it’s not just about savings. Savings open a lot of doors. Meaning, it could lead to new reinvestment.

If you want to scale your business, outsourcing can give you the avenue you need to put your business goals into reality. Since BPO providers are the ones handling the employee training, you could use your cost savings to recruiting the right talent for your core teams. 

Concentrate on your core competencies

Back office support will give you the liberty of utilizing your time and effort in maintaining the core competencies of your business. 

By assigning crucial but secondary tasks to the experts, you and your team will have more time to concentrate on heavier aspects of your company instead of spending so much time on admin tasks. 

Support your business through back office support

These are just a few of the services and the advantages that you can acquire if you outsource these services.

Outsourcing back-office support services will allow you to focus on your business goals and compete in a tough market while cutting back on costs. These cost savings can be used for improving your overall business functions to better serve your customers. 

A smooth workflow is key to ensuring that each department is sustaining what the company needs to thrive. This is why you should only partner with a tried and tested BPO company like SixEleven.

SixEleven has helped dozens of companies with their back office services. Contact us today to learn more about our services!